Chicago, IL, April 1--The Purchasing Management Association of Chicago said its index of area business activity rose to 69.2 in March on a seasonally adjusted basis from 62.7 in February, according to a press release.
In February, the index rose to 62.7 from 62.4 in January.
A reading above 50 indicates expansion in the manufacturing sector and a reading below 50 indicates a contraction.
The Chicago survey is watched closely for clues to the index of the Institute for Supply Management. The ISM March survey will be released Friday morning.
According to the purchasers' group, the headline index for March was the highest since July 1988.
The prices-paid index fell to 68.2 in March from 76.5 in February. The supplier-deliveries index fell to 51.3 in March from 53.4 in February.
The employment index rose to 66.0 in March -- its highest level since 1983 -- from 57.7 in February.
The new-orders index rose to 76.7 in March from 68.5 in February.
The Chicago index is based on a survey of purchasing managers in northern Illinois and northwestern Indiana, one of the largest industrial areas in the U.S.
